FEDERAL Treasurer Wayne Swan says he is "in step" with recent decisions of the Reserve Bank of Australia to raise interest rates repeatedly in an attempt to bring inflation under control.
The bank has lifted rates eight times in three years with many mortgagees now feeling financial pain.
Tonight Mr Swan backed the bank.
"I`m completely in step with the reserve bank and its approach to its inflation targeting regime which is in place in order to stop higher levels of interest rates into the future,`` Mr Swan told ABC TV tonight.
The bank`s governor Glenn Stevens is facing mounting media pressure because of what some newspapers see as his indifference to pain being felt by mortgagees, particularly in the poorer suburbs of major cities.
Mr Swan refused to criticise Mr Stevens and again backed the bank`s independence from Government.
"I`m a strong supporter of the independence of the reserve bank.
"Low inflation is what we need in this economy to have strong sustainable growth without high inflation and higher interest rates.``
Mr Swan will travel to Washington tomorrow for a regular meeting with the International Monetary Fund.
He will also meet with the World Bank.
"One of the reasons I`m going to Washington is to understand the impact for Australian families of this global financial turbulence that is slowing growth in the United States and will slow the world economy.
He said the credit crunch precipitated by a US sub-prime mortgage crisis would undoubtedly impact Australia.
"Certainly it will impact here,`` Mr Swan said.
"It will impact on growth in this country.
Mr Swan`s visit to Washington comes just a month ahead of his first Budget as treasurer.
